CEOs: California worst state for business

BEST STATES FOR BUSINESS 10. ARIZONA moved up three spots to break into the top 10 Best States for Business on the annual list compiled by Chief Executive magazine, based on a survey of 650 CEOs. Arizona's 8.7% unemployment rate is higher than the national average and was hard hit by the subprime mortgage meltdown and real estate crash at the start of the recession. It rates 4 stars out of a possible 5 for taxes and regulation, workforce quality and living environment, according to Chief Executive. Click on the photo above to see more Best States for Business. Or here to see the <a href="http://www.ocregister.com/articles/states-352348-business-worst.html?pic=1/">Worst States for Business</a> TEXT BY JAN NORMAN, ORANGE COUNTY REGISTER, PHOTO ETHAN MILLER, GETTY IMAGES

Business executives have named California the absolutely worst state for business for the 8th year in a row, says Chief Executive magazine.

Click on the photo to see the 10 worst states for business according to Chief Executive magazine. Click here to see the 10 best states on the same ranking.

The publication surveyed 650 chief executives about states based on such factors as business taxation and regulation, workforce quality and living environment. CEOs gave the Golden State four out of five stars for living environment, three stars for workforce quality but one star for taxation and regulation.

CEOs' opinions matter because they play roles in determining where a company will locate, expand or add jobs and increasingly, the competition is with other states more than foreign countries.

"California's enduring place of perpetual decline continues in this year's ranking," the publications states. "Once the most attractive business environment, the Golden State appears to slip deeper into the ninth circle of business hell.

"It's little wonder that most silicon Valley CEOS say they won't expand in California because of high taxes and burdensome regulation," Chief Executive continues. "Intel long ago moved its plants to Nevada, and Cisco, Google and others have located their server farms to places like Utah, Arizona and Oregon."

The publication cites California's 10.9% unemployment rate, third highest in the U.S., its status as home to a third of the nation's welfare recipients. "Each year, the evidence that businesses are leaving California or avoid locating there because of the high cost of doing business due to excessive state taxes and stringent regulations, grows."

At the other end of the spectrum, Texas ranks first on the CEOs' list of best states for business for the 8th consecutive year. It has been the receiving state for Allstate Insurance's $12 million customer center in San Antonio, Caterpillar's new plants in Seguin and Victoria; eBay/Pay Pal hiring 1,000 people for its Austin facility.

Just this week, Apple Inc. agreed to add 3,600 more jobs in Austin where it already employs 3,100 people. The company is receiving approximately $35 million in tax rebates and Austin and Texas economic development grants.

CEOs were brutal in their assessment of California. Among the quotes from unnamed CEOs that Chief Executive cites:

"California - the government is the worst in every possible way."

• "California has a great draw from a weather and location view point, but the state is so business unfriendly."

• "California, New York and Michigan...have bloated governments, are union-controlled and run significant annual budget deficits."

• "State politicians feel business and commerce are 'necessary evils' that provide the funds to enable pursuit of their misguided agendas."

• "California... has too much government who have nothing better to do than to harass businesses in the state. They need to cut the size of their regulatory bodies in half."

BEST STATES FOR BUSINESS 10. ARIZONA moved up three spots to break into the top 10 Best States for Business on the annual list compiled by Chief Executive magazine, based on a survey of 650 CEOs. Arizona's 8.7% unemployment rate is higher than the national average and was hard hit by the subprime mortgage meltdown and real estate crash at the start of the recession. It rates 4 stars out of a possible 5 for taxes and regulation, workforce quality and living environment, according to Chief Executive. Click on the photo above to see more Best States for Business. Or here to see the Worst States for BusinessTEXT BY JAN NORMAN, ORANGE COUNTY REGISTER, PHOTO ETHAN MILLER, GETTY IMAGES
BEST STATES FOR BUSINESS 9. UTAH earns top ratings (5 stars) for workforce quality and living environment and 4 stars for taxes and regulations, which are better than some states higher on the Best States for Business list by Chief Executive magazine. Its economic growth in 2007 through 2010 was lower than the national average and its new health insurance exchange "is big new risk in a business-friendly state," Chief Executive notes. TEXT BY JAN NORMAN, ORANGE COUNTY REGISTER, PHOTO TOM TILL, AP
BEST STATES FOR BUSINESS 8. GEORGIA is home to Coca Cola and Delta Airlines and is working to hold the line on taxes, according to Chief Executive magazine, creator of the Best States for Business list. The Peach State gets 5 stars for taxes and regulations and 4 stars each for workforce quality and living environment. (Pictured Johnston-Fenton-Hay house, dubbed "Palace of the South" ) TEXT BY JAN NORMAN, PHOTO COURTESY STATE OF GEORGIA
BEST STATES FOR BUSINESS 7. SOUTH CAROLINA earns 4 stars on all measures even though CEOs say it needs to improve worker's comp and unemployment insurance and put a stop to nuisance lawsuits. Its 8.07% unemployment rate is better than the national average, notes Chief Executive magazine, which compiles the Best States for Business list. And more people have moved into South Caronlina 2000-2009 than moved out. TEXT BY JAN NORMAN
BEST STATES FOR BUSINESS 6. VIRGINIA earns 4 stars on taxes and regulations and on workforce quality and 5 for living environment. Its unemployment rate of 6.2% is better than the nation's, but its economic growth is below the national average, according to Chief Executive magazine, which compiles the Best States for Business list. TEXT BY JAN NORMAN, PHOTO COURTESY U.S. PARKS DEPT.
BEST STATES FOR BUSINESS 5. INDIANA became a right-to-work state, which helped move it up one notch on Chief Executive's Best States for Business list. The Hoosier state took a bigger leap in 2011 when lower taxes pushed it up 10 spots on the list. Indiana also is helped by the fact that neighbor Illinois has done everything to drive businesses away and many of them move to Indiana. TEXT BY JAN NORMAN, AP PHOTO/MICHAEL CONROY
BEST STATES FOR BUSINESS 4. TENNESSEE is home to such companies as Federal Express and International Paper Company. Its state and local tax burden is well below the national average. CEOs give it top marks for living environment and 4 stars for taxes and regulations and for workforce quality on Chief Executive magazine's annual ranking of Best States for Business. One black mark: need for unemployment insurance reform. TEXT BY JAN NORMAN, PHOTO COURTESY GRAND OL OPRY
BEST STATES FOR BUSINESS 3. NORTH CAROLINA has worked hard to attract businesses from other states. Its state and local tax burden is at the national average, which marks it down with some CEOs on the annual Best States for Business list put out by Chief Executive magazine. It has had 665,000 more people move into the state than away 2000-2009. TEXT BY JAN NORMAN, PHOTO COURTESY NASA
2. FLORIDA moves up a spot on Chief Executive's Best States for Business list from 2011 on the strength of tax relief. Gov. Rick Scott sent Texas Gov. Rick Perry a tongue-in-cheek note warning him that the Sunshine State is gunning for best state for business rating in 2013. Florida's living environment rating (5 out of 5 stars) a tick higher than Texas but its taxes and regulations and workforce quality were a tad lower (4 stars each) than Texas. TEXT BY JAN NORMAN, ORANGE COUNTY REGISTER, JOE RAEDLE, GETTY IMAGES
BEST STATES FOR BUSINESS 1. TEXAS seems to own this list. Chief Executive magazine has ranked the Lone Star State the best state for business for eight consecutive years. It has no corporate or personal income taxes. CEOs give Texas 5 stars for taxes and regulation and for workforce quality and 4 stars for living environment. Click to see photos of the Worst States for BusinessTEXT BY JAN NORMAN, ORANGE COUNTY REGISTER, PHOTO COURTESY STATE OF TEXAS

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